Kenneth Cole retains strong balance sheet with $46 mn in cash

11 May '09

4 min read

The Company noted that inventory at the close of the quarter was $44.1 million, down approximately 4% versus the year-ago level. The Company anticipates further improvement in the second quarter inventory level as planned reductions in receipts take effect. Combined with an improved product assortment and the cost cutting initiatives, the Company expects to generate improved operating margins in the second half of the fiscal year.

Cash and cash equivalents at the end of the first quarter were $46.3 million compared to $71.5 million at this same time last year. The Company noted that it had used approximately $28.2 million of cash over the past year for the repurchase of stock and for capital expenditures.

Ms. Granoff concluded, "In the quarter, we completed our initiative to eliminate $20 million of expenses. We believe that the second half of fiscal 2009 will show improvement in our financial results as we realize the benefits of these activities, new product introductions and improved inventory management. In addition, as we gain further traction with our product, marketing and channel initiatives, we expect to enter 2010 with a renewed capability to drive growth and increase profitability."

Kenneth Cole Productions Inc

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